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Hedge fund hiring slows as multistrategy firms expand external allocations
Hiring growth at major multistrategy hedge funds has slowed as firms increasingly allocate capital to external portfolio managers through separately managed accounts (SMAs), easing competition for investment talent, according to a report by Business Insider citing research from Goldman Sachs. Headcount at multistrategy and multi-manager hedge funds increased 7% between mid-2025 and mid-2026, down from annual growth rates of 10% in 2025, 18% in 2024 and 27% in 2023. Goldman attributed the slowdown partly to the expansion of external allocation programmes, which allow hedge funds to deploy capit